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Neil Robinson

Split Up - Sale Or Rent Jointly Owned Property?

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Hi all,

I have a complex situation which I would value any thoughts from readers as to what you would do:

My (ex)-partner and I bought our house in Nov 2008. We have now split up. There is £153k left on the mortgage. We are on the mortgage as Tenants in Common and have a Declaration of Trust setting out our share of the equity and deposit. We are not married. The house has been valued and asking price set at £175k-179k. My partner would like to sever all links and have nothing more to do with it (she may be moving back to Latin America where she is from) but something in me tells me to hang onto it (perhaps my old fashioned values about not selling up once you have your foot on the property ladder).

We face ERC of 2.1k if we sell now but we come off our fixed rate at the end of 2011.

I have been asked to move to Brussels with work and part of me was thinking whether it would be best to keep it as a buy to let investment. Whilst the bank say they are happy to authorise a temporary rental for 12 months on a residential mortgage I would have to remortgage if I stay in Brussels permanently. The expected rental yield will currently not cover the mortgage outgoings (but I will get some allowances from work so I would not be completely out of pocket).

Oh, and the bank refuse to transfer me onto the entireity of the mortgage due to their affordabiltiy criteria. I have calculated I could afford to assume the entire mortgage since I will have allowances coming in from work, but they refuse to take these into account in their underwriting decision.

I'd value anyones ideas about what the best course of action might be.

thanks!

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Sounds like your ex partner wont agree to paying half the mortgage until 2011, and you dont have enough equity to get a BTL mortgage, you say you cant get a normal mortgage even if you wanted to keep it. So logically you only have one option you are forced to sell it.

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I agree with AteMoose. I don't see that there are any options available to you. So it's going to cost about £3k in EA & legal fees + £2k redemption. That's £5k in "selling fees" ... looks like you'll still be coming out without making a loss.

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I agree with AteMoose. I don't see that there are any options available to you. So it's going to cost about £3k in EA & legal fees + £2k redemption. That's £5k in "selling fees" ... looks like you'll still be coming out without making a loss.

I agree, sell it but rememeber, you get to spilt the fee's!

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Sounds like your ex partner wont agree to paying half the mortgage until 2011, and you dont have enough equity to get a BTL mortgage, you say you cant get a normal mortgage even if you wanted to keep it. So logically you only have one option you are forced to sell it.

What he said...

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Sell, sell, sell! Your ex may be being fairly reasonable now; but who's to say that 6 months down the line she still will be?

Especially as you will be moving abroad, you need certainty above all.

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  • 152 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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